Youth unemployment figures show a fall of 18,000 since New Deal was launched in 1998, but Demos found that for every young person claiming unemployment benefit there was another missing from the system. The research found that there were 624,000 young people out of the system. One in three had no qualifications, half lived in households where nobody worked and nearly 40 per cent of the people had never worked.
"Periods of unemployment early on in adulthood leads to greatly reduced chances of economic independence, employment and of having a stable family life later on," said Tom Bentley, author of the report.
t A "three-strikes-and-you're-out" benefit rule is to be introduced for youngsters who refuse to take up New Deal job offers, the Government is to announce this week.